This invention relates generally to computer systems and more particularly to dynamically converting a first currency to a second currency on a computer system.
The need to convert currencies presents an ongoing problem in international commerce and includes not only the need to translate between the currencies of a sender of a product and a receiver, but also those of handlers of the product and any taxing entities in between the sender and receiver. Further, translation between currencies involves translating representations of the currencies as well as translating currency values.
While currency conversion is at face value a simple mathematical event, many obstacles prevent effective and direct implementation. These obstacles include the date and time sensitivity of currency values, and the complexity of rate data, that is, the time value of money. Currency rate data comprises historical rates, prior market close rates, delayed market rates, immediate market rates, future rates (forecasts and with interest-bearing components), options (bets as to future price for sales or acquisition of a currency), stripped bonds, and any other financial instruments. Currency rates vary depending on factors such as direction of currency translation (i.e. from USD to DEM or DEM to USD), bids, asks, transaction size-dependencies, and whether specific dates/times/currency pairs are missing or unavailable.
The constantly changing relative values of currencies further complicates the operation of currency translation. Currencies undergo sudden and rapid devaluation, and reissues. In addition, new currencies are introduced from time to time, as when countries join together as in the European Union, which plans on introducing a new currency, the Euro, in 1999.
Finally, a currency is not an exact entity. For example, a xe2x80x9cdollarxe2x80x9d could define a United States Dollar, a Sierra Leone Dollar, or many others. Each dollar has a different value in reference to each other, a value which fluctuates by usage, the size of the translation, and over time. The dollar may also have a different value based on where a trade (or posted bid/ask) takes place. Further, the currency of a specific country is not always a single entity, and could be represented by multiple currencies of common acceptance. The Franc and the Peso are both openly used in Andorra, for example.
A reliable currency translation system must be able to handle the following situations: missing rate information, translation from an original currency basis to an objective currency target through one or more intermediate currencies, and transaction costs and spreads where bid and ask or future contracts can substantially devalue the results.
In the case where a potential customer wants to compare costs of goods or services available from sources in a plurality of countries, such as a trans-oceanic telephone circuit at the countries terminating that line, the task quickly becomes time-consuming and onerous. There is a need for a system to perform this task efficiently and accurately.
In accounting functions including financial statements and projections, etc., it is desirable to have a uniform asset base in order to track currency data with respect to time. There is a need for a system which translates currency to base values which can be compared over time.
A new aspect of international commerce has emerged in the form of the Internet. A problem in Web-based commerce is that online catalogs display pricing information in the local currency of the business hosting the online catalog regardless of scope, customer reach, or target market of the offered products. Global commerce, however, is not specific to language or currency, and there is a need for a method for translating currencies from a base currency of a hosting business to a currency useful for potential customers using a Web site. An accurate and reliable means for translating between currencies would also be useful to potential customers reading printed publications, or otherwise involved in international trade.
Conversion of the value alone from one currency to another is insufficient for complete solution to the problems of currency conversion. Currencies are not displayed the same way in every country and customers expect that a currency format is localized with the prevailing accepted syntactical standard. It would be very useful, for example, for a Web user accessing a page originating in another country to see prices in the Web user""s own currency, displayed in the locally accepted format. The display of currency formats in the expected format in a remote location is complex and not handled by existing systems and methods at the current time. Standard techniques for numerical formatting are insufficient because the currency value is not merely formatted, but also might contain prefixes, suffixes, unusual symbols, and sub- and superscripting.
The problem for multilingual and multiple currency web sites is that not every language or culture formats currencies (and numbers) in the same way. For example 1,000,000.00 in the U.S. becomes 1.000.000,00 in Germany. In addition, various currencies have locally accepted display formats. For example, some locales will display 1xe2x80x2000xe2x80x2000 and 00/100 (superscript/subscript) instead of 1.000.000,00. Furthermore, currency symbols and formatting are based on prefixes, suffixes, and the handling of negative values in different ways. The differences in currency representation create functional problems for banks unfamiliar with specific currencies and cultural idioms. A successful currency conversion requires both translation of currency value and conversion of the representative symbols as well as display in the appropriate format.
Finally, lack of a functional result is a serious problem for all data processing operations, which typically halt when encountering an error or lack of information. Rate data may not be immediately available at the time it is needed to fulfill a translation request. For business, and data processing, to continue, a way of handling missing data is needed in a reliable translation system.
It remains desirable to have a method and apparatus which provides easy currency translation in a manner structured to provide conversions within the natural workflow of business.
It is an object of the present invention to provide a method and apparatus for performing currency translation which accommodates dynamic currency data.
It is another object of the present invention to provide a method and apparatus for displaying product prices in local currencies on Internet or web-based product catalogs.
It is another object of the present invention to provide a method and apparatus for converting and displaying currency values in local currencies for conversion of text for printed price lists.
It is another object of the present invention to provide a method and apparatus to translate the value of assets in foreign denominations to a base currency or any other foreign currency, or currency equivalent such as gold, platinum, palladium, silver, or rhodium.
It is another object of the present invention to provide a method and apparatus to maintain a uniform asset base valuation for accounting functions such as financial statements.
It is another object of the present invention to provide a method and apparatus to provide arbitrage opportunities for currency speculation by using fast, accurate and reliable currency translation.
It is another object of the present invention to provide a method and apparatus to evaluate multiple sources for acquiring products and services based on localized costs, such as comparing the cost of a trans-oceanic telephone circuit at the countries terminating that line.
It is another object of the present invention to provide a method and apparatus to support local currency valuations in terms of the Euro (EUR currency unit mandated for introduction in 1999).
It is another object of the present invention to provide a method and apparatus to support accounting systems so that transactions can conform to the FASB 52 (1981) standards for providing cross-currency valuations at the time of the transaction or converted balance sheet rollups at current valuations.
It is another object of the present invention to provide a method and apparatus to perform logistical support for arranging international sales and delivery by providing reliable currency valuation and projections.
It is another object of the present invention to provide a method and apparatus to optimizing costs or profits for international investment transactions.
It is another object of the present invention to provide a method and apparatus to evaluate travelers"" checks and other cash-convertibles.
It is another object of the present invention to provide a method and apparatus to display a currency value in the locally expected format.
It is another object of the present invention to provide a method and apparatus to resolve currency codes (common character-based and numeric), country names, exchange rate symbols, and currency names in converting from one currency to another.
It is another object of the present invention to provide a method and apparatus to provide display localization independent of any computer configuration including language settings, keyboard layouts, preferred date formats, and numerical formatting, particularly overcoming host computer configuration limitations to a single display format.
It is another object of the present invention to provide a method and apparatus to provide automatic recognition of currency information within a text-based document, formatting of that currency information into a localized display, and replacing of the original currency display with the newly created localized format.
The problems of translating between currencies are solved by the present invention of a method and apparatus for localizing currency valuations.
The present invention is a currency translation system that provides for the dynamic translation of a first currency value into a target currency value for the purpose of aiding localization and globalization of financial transactions. The system may be used as a standalone translation system or it may be embedded in a larger application such as a financial analysis program or a Web commerce program. The system takes as input the starting currency, a target currency, and transaction rules. The system maintains a database of currency rates, currency histories, conversion rules and currency representation data. Optimization and backtracking techniques are used to deal with partial rate information and in order to find optimal valuations involving a triangulation of currency translations. The system can produce a single result or a matrix of results from which the user can choose an optimal valuation. The system also provides for the formatting of a numerical currency value into a presentation specific to the locale of the translation request.
Further, the system includes support for translation from a single original currency to plural objective currencies, either as a single original to a single objective, a single original to plural objectives, plural originals to one-for-one plural objectives, plural originals to plural objectives. In other words, one basis can generate a specific target or a list of targets in different currencies, or multiple sources can generate a one-for-one translation or a complex collection of lists.
By providing a middleware application (inline in-process system and method) that is easily placed between other computer procedures, the currency translation system creates a new fundamental business function. This functionality extends the ease with which businesses of all types can promote products and services beyond a small, local market to a global market with a localized presence. In addition, this invention simplifies the task of evaluating assets of all types (cash-convertibles, stocks, bonds, mortgages, financial instruments, property, corporate entities, etc.) for at least two purposes. First, reduction of mixed basis values to a single currency basis simplifies asset management and accounting. Second, immediate and dynamic currency translation facilitates global finance and optimal markets in terms of locating the best investments and financing.
The currency translation system can be used to dynamically translate currencies from a base to that which is familiar to a web user in another country, to roll-up a multinational""s accounting system into a single currency basis, or to evaluate an investment in different countries. The system provides for implementation of accounting systems and data storage of currency or balance sheet valuations using unlimited bases with rollup to a single or many objective currencies while accounting for the present or future value of money. The invention is a system and method that provides for the formatting of a numerical currency value into a presentation specific and necessary for the localization and globalization of business. The system formats currency values for visual display in a presentation consistent with localized expectations.
The currency translation system will facilitate local business to realize international commerce opportunities. The results for customers in the market will be acceptable and familiar rather than xe2x80x9cforeign.xe2x80x9d This is an important aspect in creating the essence of localization and internationalization for doing business in far-off locations. The invention will expose business and software developers to a focused set of tools that facilitate global commerce without the complexities of local banking systems, brokerage quoting systems, and the general lack of currency information and services at the present time. The most immediate ramification will be the inclusion of these capabilities within online, Internet, and other electronic commerce systems, such as EDI (electronic data interchange), ACH (automated clearing house), electronic web-based storefronts, and web-based advertising. This process and method will simplify complex multiple currency and financial transaction processing operations.
The present invention together with the above and other advantages may best be understood from the following detailed description of the embodiments of the invention illustrated in the drawings, wherein: